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PRECIOUS-Gold inches lower ahead of U.S. Fed policy meet

Published 03/16/2021, 09:36 AM
Updated 03/16/2021, 09:40 AM
© Reuters.
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March 16 (Reuters) - Gold prices eased on Tuesday, as
investors turned to riskier assets on hopes of a quick economic
recovery, while they awaited the outcome of a U.S. Federal
Reserve policy meeting.

FUNDAMENTALS
* Spot gold XAU= was little changed at $1,732.32 per ounce
by 0108 GMT, while U.S. gold futures GCv1 fell 0.05% to
$1,728.20 per ounce.
* Fed policymakers are set to forecast that the U.S. economy
will accelerate at the quickest rate in decades in 2021, with
unemployment dropping and inflation increasing, as the COVID-19
vaccine initiative ramps up and a $1.9 trillion relief package
is dispersed among households. * Bullion was also pressured as the S&P 500 and Dow Jones
Industrial Average closed at all-time highs on Monday. Asian
stocks were set to open higher on Tuesday. .N MKTS/GLOB
* Longer-term U.S. Treasury yields fell on Monday, and the
yield curve flattened. US/
* Andrew Bailey, governor of the Bank of England, said he
was more hopeful about the economy, "with a strong dose of
caution," and a recent increase in interest rates in capital
markets was consistent with the chances of recovery from the
COVID recession. * Investors also eye the U.S. Commerce Department's February
retail sales data due on Tuesday, following January's 5.3%
surge.
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.2% to 1,050.32
tonnes on Monday from 1,052.07 tonnes on Friday. GOL/ETF
* Silver XAG= fell 0.2% to $26.22, platinum XPT= was
down 0.1% at $1,211.91 and palladium XPD= dropped 0.1% to
$2,385.23.

DATA/EVENTS (GMT)
0745 France CPI (EU Norm) Final MM, YY Feb
1000 Germany ZEW Economic Sentiment March
1000 Germany ZEW Current Conditions March
1230 US Retail Sales MM Feb
1315 US Industrial Production MM Feb
U.S. Federal Open Market Committee starts two-day meeting
on interest rates

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